Tax Credits
Tax Credits are payments from the government; in order to receive them you must claim them.
Child Tax Credit (CTC)
You do not have to be in work to claim Child Tax Credit.
You could decide to use your Child Tax Credit award to help with childcare costs.
Working Tax Credit (WTC)
- provides a financial top-up for people on a low income.
- includes a childcare element which, depending on your circumstances, can cover up to 80% of your childcare costs.
The childcare element
- can be claimed by people who are aged 16 and over and work at least 16 hours a week and are responsible for a child or young person.
- can only be claimed if you are using a registered childminder, pre-school, nursery or out-of-school group, or a setting which is on the Voluntary Childcare Register (VCR).
Salary Sacrifice
This a tax benefit scheme for working parents to help with the cost of childcare. Under the scheme parents may take childcare vouchers in lieu of some of their salary. They do not have to pay income tax or National Insurance on the part of their income 'paid' in childcare vouchers.
Estimates from ask
We can give estimates over the phone of:
- your entitlement to Tax Credits.
- the savings you would make by taking Salary Sacrifice.
- how Salary Sacrifice would affect your Tax Credits.
Child Benefit
All families with children are entitled to receive Child Benefit.
Child Benefit is paid as long as the child or young person is in full time education up to the age of 18 or to the age of 19 if the young person goes on to Further Education.
When you claim Child Benefit for a baby you will receive an additional payment to invest for the child until he or she is 18 (the Child Trust Fund).
New Baby
When you have a baby you may be entitled to:
- Statutory Maternity Pay
- Maternity Allowance
- Statutory Paternity Pay
The payments above are based on your recent employment and earnings.
- Sure Start Maternity Grant
This grant is paid only to mothers on low incomes.
Claims for some of these entitlements have to be made before the baby is born, so make your claims in good time.
Free Early Years Entitlement
From the term after their 3rd birthday until they start school all children are entitled to up to five free 2½ hour early education sessions a week for 38 weeks of the year.
Sessions may be taken at a registered nursery of pre-school or with an accredited childminder.
Benefits
If you family has a low income you may be entitled to other benefits including:
- Income Support
- Housing Benefit
- Council Tax Benefit
- Free Prescriptions
- Vouchers for Dental and Optician Vouchers
- Healthy Start Vouchers
Social Inclusion Fund (for 0 -5's) and Inclusion Support Fund (5 - 19 years)
Some funding is available from Wiltshire County Council to enable children and young people who have a disability or a social or developmental need to access childcare and leisure activities.
Where to Claim
- Tax Credits - to H.M. Revenue and Customs Helpline 0845 300 3900
- Salary Sacrifice - to your employer
- Child Benefit (and Child Trust Fund) - to Child Benefit Helpline 0845 302 1444
- Maternity and Paternity Pay - to your employer
- Maternity Allowance - to Jobcentre Plus 0800 055 6688
- Sure Start Maternity Grant - to Jobcentre Plus Social Fund 0845 608 8616
- Inclusion Funds - Contact the Family Information Service helpline at ask 08457 585072
The cost of childcare is a consideration for all parents returning to work, seeking employment or simply wanting their children to experience an early years setting.
The latest survey by the Daycare Trust (a national childcare charity campaigning for quality, affordable and accessible childcare) identified that the average costs for childcare in the South West were:
- Day Nursery - (under 2) £162 per week (national average £159)
- Day Nursery - (2 and over) £154 per week (national average £149)
- Childminder - £150 per week (national average £144)
- Out-of-school Club - £40 based on 15 hours per week (national average £43)
